The TIC investment is one of great popularity, one that offers many advantages but which also holds many potential risks. In this investment, multiple qualified property owners come together in order to purchase a property or piece of real estate. Each of the co-owners involved here holds responsibility and is willing to assume the inherent risks and expenses that are associated with real estate investments in general.

TIC: Reserves, Financials, and Proforma

When it comes to TICs it is very important that any potential investor be aware of the TIC: reserves, financials, and proforma. One of the most important issues on TIC: reserves, financials, and proforma, is one that involves the rights of the tenants involved.

Each of the tenants in common property owner has all of the same rights as a single owner, and they share the same share of risk as well as net income or losses and tax benefits.

Rules

There are a few rules related to TIC: reserves, financials and proforma, three in particular which are: the Three-Commercial Property Rule, the Two Hundred Percent Rule, and the Ninety-Five Percent Exception.

The first, the Three-Commercial Property Rule allows the exchanger to identify up to a total of 3 potential replacement commercial properties within the acquisition period. The Two Hundred Percent Rule holds that if there are three or more commercial properties that are identified as replacement commercial properties then their aggregate market value cannot exceed that of 200% of the value of the commercial property sold.

Finally with the Ninety-Five Percent Exception, this is only used in the event that the first two rules do not apply, and in this situation the aggregate market value of all properties acquired in the exchange must comprise of at least 95% of the closing value of the commercial property relinquished.

There is also other important information regarding TIC: reserves, financials, and proforma that any potential investor should be aware of, and if you are considering this the best idea is for you to talk to your tax consultant. They will assess your current situation and help you to decide whether or not this is going to be a smart move for you to make.

You can also do a bit of research on your own, by using the Internet and reading up on TICs and similar investments. The more educated you are the better off you are going to be, and the more intelligent and rewarding financial decisions you are going to be able to make.

Kathryn R. Landry is a business writer for TIC Advisors, Inc. A company that can give you the most complete information on a 1031 exchange or TIC property ownership.

The simplest answer when it concerns learning more about what are tenant in common properties is that it is a form of co-ownership of property in which two or even more people can have part interest in an investment property. However, it is not necessary that property shares must be equally divided between the co-owners and ownership can even be inherited. Still, if you are a co-owner, you are entitled to receive a deed of your own at closing as well as receive a percentage (undivided) in the property as a whole.

Not More Than Thirty-Five Co-Owners

Another important aspect that needs to be considered when learning about what are tenant in common properties is that there cannot be more than thirty-five co-owners and so, it is advisable to know everything that there is to know about what are tenant in common properties since it does give you a better chance of owning a property that otherwise would have been beyond your means, and even better, you can put in just as much money as you can reasonably afford to become a co-owner in the property.

You may also need to learn more about what are tenant in common properties because the fact of the matter is that these properties need not only be residential, but they can also be institutional and which as a result invite minimum investment. Thus, having realized what are tenant in common properties, you will soon realize that there are some very attractive deals that you can buy into.

The best answer to what are tenant in common properties lies in understanding that because there are numerous high grade properties that become affordable only if you choose tenancy in common as the means of ownership, you stand a better chance of owning a property even if it is only a small share of the entire property. In fact, you will also learn more about what are tenant in common properties if you delve deep into the many different types of properties that only become affordable to you through tenancy in common and which would otherwise be beyond your purchasing power if you were to go it alone.

Furthermore, another aspect worth considering with regard to what are tenant in common properties is that these properties can help you earn a decent income and there is also a lot of growth potential involved because such properties will usually attract the better heeled tenants. In addition, you will also find out through further research on what are tenant in common properties that this form of ownership of property opens up the possibility to own several properties including community properties. And, there is another important aspect in learning about what are tenant in common properties and that is that you won’t have to face any headaches with regard to managing the property on your own because there are many owners who can deal with different aspects of the property.

Kathryn R. Landry is a business writer for TIC Advisors, Inc . A company that can give you the most complete information on a 1031 exchange or TIC property ownership.

The simplest answer when it concerns learning more about what are tenant in common properties is that it is a form of co-ownership of property in which two or even more people can have part interest in an investment property. However, it is not necessary that property shares must be equally divided between the co-owners and ownership can even be inherited. Still, if you are a co-owner, you are entitled to receive a deed of your own at closing as well as receive a percentage (undivided) in the property as a whole.

Not More Than Thirty-Five Co-Owners

Another important aspect that needs to be considered when learning about what are tenant in common properties is that there cannot be more than thirty-five co-owners and so, it is advisable to know everything that there is to know about what are tenant in common properties since it does give you a better chance of owning a property that otherwise would have been beyond your means, and even better, you can put in just as much money as you can reasonably afford to become a co-owner in the property.

You may also need to learn more about what are tenant in common properties because the fact of the matter is that these properties need not only be residential, but they can also be institutional and which as a result invite minimum investment. Thus, having realized what are tenant in common properties, you will soon realize that there are some very attractive deals that you can buy into.

The best answer to what are tenant in common properties lies in understanding that because there are numerous high grade properties that become affordable only if you choose tenancy in common as the means of ownership, you stand a better chance of owning a property even if it is only a small share of the entire property. In fact, you will also learn more about what are tenant in common properties if you delve deep into the many different types of properties that only become affordable to you through tenancy in common and which would otherwise be beyond your purchasing power if you were to go it alone.

Furthermore, another aspect worth considering with regard to what are tenant in common properties is that these properties can help you earn a decent income and there is also a lot of growth potential involved because such properties will usually attract the better heeled tenants. In addition, you will also find out through further research on what are tenant in common properties that this form of ownership of property opens up the possibility to own several properties including community properties. And, there is another important aspect in learning about what are tenant in common properties and that is that you won’t have to face any headaches with regard to managing the property on your own because there are many owners who can deal with different aspects of the property.

Kathryn R. Landry is a business writer for TIC Advisors, Inc . A company that can give you the most complete information on a 1031 exchange or TIC property ownership.

Tenancy in common is now a popular method in acquiring real estate properties, whether for business or residential purposes. Tenancy in Common or TIC is the method of acquiring real estate properties with other individuals as a joint venture. The shares are not necessarily equal with the rest, but will depend on the investments of each individual for that acquisition.

The joint venture is quite appealing to business individuals due to the prospect of less risk. Since the investments, earnings, profits, and expenses are all shared by everyone; the financial burdens would be segregated as not to burden the different parties concerned.

Another factor for its popularity is due to the possibility of maximizing profits with your fixed financial budget. Acquiring multiple real estate properties with your group can increase profit, unlike purchasing a single property on your which will take up most of your budget. This way, TIC can offer a bigger possibility of profit and capital gains to be had along with your partners.

Title Companies and Closing Agents

But as with business, tenancy in common processes is quite tedious and complicated especially those who don’t know anything about it. Various professionals like title companies and closing agents can rent out their services to simplify the complex tenancy in common processes that you will have to face.

Title companies is just one of the tenancy in common process that a joint venture should inquire to get the business started. Their professional aid can handle any complex transactions for TIC without wasting time and money.

These title companies will search out facts about the property in the form of an “abstract of title”. These titles will incorporate important information such as: 1) the rightful legal owner of the property you wish to acquire; and 2) determine legal information regarding it, which includes leases, mortgage loans, and so on.

Upon completion of the abstract, the title company will now issue a “title opinion letter” to the buyer or the lender, depending on who initiated their services. Once all these tenancy in common processes are done, the closing agent will handle all the paper works and requirements to close the deal.

Closing agents will act as an intermediary between the title company and the buyer/lender, as well as the seller of the property. Signing of papers, exchanging necessary documents, payment schemes, rights, fees, and so on will be handled by them. This is usually done when the agent will issue a closing statement with the following information: 1) charges of the mortgage lender (if any), 2) charges for preparing the documents involved during the tenancy in common process, 3) fees of both the closing agent and the title company, 4) taxes, real estate or any legal fees incurred during the transactions.

One all the parties have signed and approved of all the proceedings, the title company will then follow up on the final tenancy in common process to record any legal documents at the county courthouse and return the significant documents to the parties concerned.

It is true that the advantages of TIC is quite desirable to the average entrepreneur, but with the complexity of the tenancy in common processes, the invaluable services of the title companies and closing agents are worth the additional costs.

Kathryn R. Landry is a business writer for TIC Advisors, Inc. A company that can give you the most complete information on a 1031 exchange or TIC property ownership.

The TIC investment is one of the most popular today and for good reason, as there are many advantages that investors can receive from it. There are also many risks but the benefits definitely outweigh them. Before you get into a TIC investment yourself you should learn more about it and about TIC: what could go wrong.

TIC: What Could Go Wrong?

When it comes to the issue of TIC: what could go wrong, there are a few things that should be discussed. The rules of the TIC or 1031 exchange are very complex which is one of the major reasons that it can end up going so wrong for some investors. Real estate buying in general is about as complicated as it gets, so this is definitely not an industry for people with no patience or people who cannot keep up.

It is important that an investor never treat their investment like it is a sure thing, as though nothing could possibly go wrong, because this is never the case and there are always potential risks.

On the topic of TIC: what could go wrong, it is important to estimate the exchange risk before going through with it yourself, and consider how, for instance, even for the transactions that do not qualify for the safe harbor, the no-reference rule set in place by the IRS results in leaving the door wide open for other arrangements.

You also need to consider how much the 1031 timelines will limit your opportunities when discussing the issue of TIC: what could go wrong. In a standard exchange here the investor will usually identify between one and three different potential replacement properties within a month of closing on the relinquished property.

Once this occurs the investor then must close on at least one of the properties within 180 days of closing on the relinquished property, and this definitely creates a challenge in regards to timelines. There is never a guarantee that the investor will be able to successfully purchase any of the properties that have been identified, thereby putting them at great risk.

As long as you have taken the time to take the proper factors into consideration, have weighed out both the good and the bad about the 1031 exchanges and decided that it is in fact for you, then you should have no problems and it should turn out to be a wise investment. Having an agent work with you here will be ideal, because they are will experienced and be able to give you a hand through the process.

Kathryn R. Landry is a business writer for TIC Advisors, Inc . A company that can give you the most complete information on a 1031 exchange or TIC property ownership.

Given the immense popularity of tenant in common properties, you may wonder why are tenant in common properties so popular. Of course, there are several reasons for this increased popularity and one of the reasons for this is that real estate syndicators as well as investors that are putting their money into income properties are finding tenancy in common as the best vehicle with which to execute income tax-deferred exchanges. This trend owes a great deal of its popularity to IRS rulings that have recently been made regarding recognizing tenancy in common as being legitimate exchanges.

Spread The Cost Of Ownership

Another answer as to why are tenant in common properties so popular lies in the fact that buyers looking to purchase vacation homes as well as many developers of resorts are taking recourse to using tenancy in common to spread the cost of ownership amongst several owners and this in turn means that people need not spend more than they can afford while still becoming an owner of a property albeit not becoming the sole owner.

Yet another reason why are tenant in common properties so popular has to do with co-owning multi-unit properties by people who want to have exclusive rights to certain specific areas within the property. Thus, the reason why are tenant in common properties so popular has to do with the fact that tenant in common owners will become owner of percentage of a whole property and not just only certain units or even apartments. In addition, the deed will show that the co-owner only owns a certain percentage which gives them the right to use certain dwelling as laid out in the Tenancy in Common Agreement and which use is not dependent on a deed or map or any other type of document.

Also, since such form of co-ownership is not the same as owning a condominium or stock co-operative, this is yet another reason ascribed to why are tenant in common properties so popular. Thus, given the mounting costs of owning properties it should not come as any big surprise to learn that tenancy in common offers people a better chance to own properties and that this is also another reason why are tenant in common properties so popular.

In fact, co-ownership helps to lower the cost of owning the property and this in turn means that buyers have a lot more choice when it comes to owning properties and when certain number of people pool all of their resources together, they are in a better position to purchase better properties while also agreeing to allocate rights amongst themselves which in turn means that they can decide on how much responsibility they are going to shoulder.

Finally, the answer to why are tenant in common properties so popular lies in the fact that tenancy in common helps increase the sales price as well as offers more marketing options and given the introduction of fractional loans this is one more reason as to why are tenant in common properties so popular.

Kathryn R. Landry is a business writer for TIC Advisors, Inc. If you are looking for the most complete information on a 1031 exchange or TIC property ownership then you should visit one of the TIC Advisors, Inc. websites which is at http://www.tic.com and http://www.ticadvisors.com.

Due to the sudden influx in real estate demands, many who are into the business noticed a sudden rise in prices among different real estate properties around the world. The clamor over these real estate properties are going on a record breaking high despite its normal price range.

To cope with this scenario, many real estate investors and individuals are looking for partners in real estate acquisition. This joint venture is best described as Tenancy in Common or TIC. This kind of venture allows individuals to pool their resources together to purchase one or more properties to further expand their business, or to maximize profit quite impossible to achieve as a single individual.

This kind of venture is quite popular with its ability to reduce the financial risk of the parties involved. Other advantage includes minimizing the business expenses of each co-owner by sharing it with the rest of the group, depending on the percentage shares of each individual. This further reduced the risk of over-financing the business over unnecessary expense.

Fractional loans

TIC lenders have formed a consortium regarding the idea of fractional loans which allows co-owners to individually initiate mortgage from lending firms; which can be paid individually depending on the allocation of shares in joint ventures. TIC lending firm offer different rates, like interests, depending on the scale of the business of these TIC ventures.

A co-owner can engage in a separate loan with TIC lenders which involves a signed note covering the individual’s share in the property, along with a deed of trust of covering the co-owners share. In case of a defaulted loan, TIC lenders can immediately foreclose the co-owner’s share without affecting others in the process, unlike those in group financing by other lenders. Many TIC groups are now aiming for TIC lenders who offers fractional loans to minimize the risk of tarnishing the company’s image through bad credit, or worse, terminating the business..

Since its advent roughly around 20 years ago, many private lending firms pushed the idea of TIC lenders to various individuals in the joint venture. These lending firms now offer individual notes and finances for fractional vacation home developments, which is on the rise since the steady influx of tourism.

Many TIC lenders such as banks and other private firm’s look into the possible profit to be had in fractional loans, as opposed to normal loans engage in home development and business refinancing. Considering the low-risks involved in such a venture, many TIC lenders recognized the possible growth to be had in profit and capital gains through this individual specific loans for tenancy-in-common organizations.

Kathryn R. Landry is a business writer for TIC Advisors, Inc. A company that can give you the most complete information on a 1031 exchange or TIC property ownership.

There are many things that you should do before going through with TIC financing, one in particular involving TIC: visiting the property. Before you choose any investment TIC property there are several things in particular that you should be aware of.

This includes learning about time limitations, as after the close of the old investment property the investor has a mere 45 days from the close of escrow to identify three potential TIC replacement properties. Another important issue involves the qualified intermediary, and how the 1031 exchange must be handled by an independent party qualified intermediary.

TIC: Visiting the Property

In particular regards to TIC: visiting the property, this is one of the first and most important steps that you as an investor will need to take. You need to ensure that the property you are considering is right for you and that it is going to be financially rewarding.

There are a few factors in particular that you are going to want to consider when you are choosing a property. How many units there are in the building, whether there have been any evictions on the property, and how long the current TIC partners have been in place all of these are important issues when choosing a property for a TIC.

For TIC: visiting the property, there is one major question that you are going to have to ask yourself, and that is whether you should go with the fractional or traditional TIC. A fractional TIC is one that is a recently new development in home financing, with one of the most major benefits being that each owner is only financially tied to the percentage of the building that they are actually purchasing.

Then there is the traditional TIC, and if the property is already being operated as a traditional TIC and you would prefer to individualize the loans, you do always have the option of individualizing them.

TIC visiting the property is very important because you need to make sure that you are investing your money wisely. Also keep in mind that with proper preparation and common sense, you can reap many benefits from owning property as Tenants in Common. One of the most attractive features of a TIC structure is that when you acquire an interest in an investment property as tenants in common you are not precluded from buying investment property on your own in a subsequent 1031 tax deferred exchange.

Kathryn R. Landry is a business writer for TIC Advisors, Inc. A company that can give you the most complete information on a 1031 exchange or TIC property ownership.

Many people buy annuities according to their agent’s recommendations. However, many people do not even know what they own. It is a good idea to take inventory of your investments, and particularly your annuity. It is important to understand what your annuity can and cannot do and what features it has. Here are some of the things you definitely must be sure to know about your annuity:

1. What interest rates are you currently getting?

2. Are the interest rates getting worse?

3. What is the rating of your insurance company? (Critical)

4. What are your surrender charges?

5. Is your principal ever at risk?

6. What retirement & income options does your annuity have?
7. Is your annuity Medicaid Friendly?

8. Did you properly designate your beneficiary annuitant and even ownership of your annuity?

9. How safe is your annuity?

10. Is your annuity subject to double taxation?

12. What is your minimum guarantee?

13. Are you eligible for a 1035 exchange?

14. What happens in the event of your death? Are your beneficiaries entitled to all of the money or are there penalties?

This is a good beginning inventory list. These questions are important in assuring you are doing what is right for you. As we said before, the best annuity is the one that is best for YOU. And by taking inventory of what you own, you can now assess it against your own goals and make sure there is a match.

There are many more things you’ll want to know but again, this is a good start. By doing this, you can at least begin to understand what it is that you have, what you are looking for and what you need for your future. Kind of like spring cleaning, this is a process you don’t always look forward to, but in the end it is definitely worth it. You will be glad you took this step.

By the way, this is a good process to go through periodically. As you know, your needs change over time. And as they change, you must make sure your investments are always in line with your goals. If they are, great. If they aren’t, well, change your goals—or change your investments! But make sure there is a match.

Hopefully this helps. And remember, it’s not what you know; it’s what you do with what you know. If this makes sense, then pull your annuities out and take inventory. There is no better time than the present.

And by the way, if you do want good annuity information, or to learn more about that shocking secrets about your annuities that your agent doesn’t want you please visit AnnuityMD.com

Tony Bahu is author of the controversial book, ‘Annuities: The Shocking Truths Revealed.’